Central Bank sells $500M in interbank to cover food commodities before Ramadan
Central Bank of Egypt - YOUM7(Archive)

CAIRO: The Central Bank of Egypt (CBE) announced Monday the sale of $500 million in the interbank market, to clear outstanding strategic staple food commodities with the approach of the month of Ramadan, the bank posted on its website.

In a surprise move, the bank did not offer its typical hard currency auction Monday, and tended to use the interbank system instead. This is the third sale in 2015 after a three-year suspension.

The CBE usually holds dollar auctions every Sunday, Monday, Wednesday and Thursday.

“The sale will be directed to cover the amounts reported by banks as of April 30,” said the CBE.

Egypt’s local currency has stabilized at 7.53 to the dollar over the past two months after the central bank let the pound weaken against the dollar in 10 consecutive depreciations starting Jan. 18, as part of its clampdown on the parallel market.

It also imposed a $10,000 daily ceiling for cash deposits in hard currency for both individuals and companies.

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